Brokerage
Small and medium sized publishers grow better, faster, and more responsibly through acquisition than internal development.
Our Philosophy at NPL is that small and medium sized publishers grow better, faster, and more responsibly through acquisition than internal development. It is faster, more efficient, less costly, more focused, and achieves strategic goals, with less risk, than conventional “publish and pray” methods.
Acquiring titles, or an entire company, from another publisher provides a track record, which minimizes risk; and completed product and inventory, negating developmental difficulties and delays. Acquisition often brings distribution, and a marketing, review, and PR plan in effect. All of the above can be delivered at a cost far less than internal development costs of staff, equipment, space, services, and time and energy to produce the same number of books, and with known results.
To accomplish this phase of growth, clients would ask – Do YOU know of companies available that I can acquire? Thus, brokerage work became necessary to become “full service” and assist clients in achieving their success.
As well, every Strategic Plan has an Exit Strategy. This defines what happens at the other end – a sale, a transfer to family, liquidation, merger, acquisition by staff or employees as a whole – but the Exit Strategy, in order to implement it, requires the services of a broker, in some cases, or a publishing consultant, in others, to accomplish this “final goal” for the successful publisher.
Using fairly straightforward methods of valuation, it is easy to arrive at a “ballpark” figure for a company’s sale value. Of course, the marketplace is the final arbiter of price, and of desirability. With a Seller, we work toward the goal of getting a few dollars more than the company’s value; with a Buyer, we work toward the goal of getting a company for a few dollars less than the company’s value. There is no fooling anyone in these transactions, and when someone believes they can, it becomes a waste of everyone’s time.
When we say that a company is asking $800,000., and should sell in the $750K range, or $300,000., and should sell in the $270K-$275K range, we mean it. This is our honest opinion based on years of empirical experience in the marketplace. We will not even attempt to fool or fast talk a potential Buyer into a deal at any more – nor will we take kindly to considering offers for much less. Of course there are times when a special event, or circumstance, or a requirement for a fast sale, or a sudden bestseller, may alter the landscape substantially, but all in all, the figures are based in reality, and you can trust being 5% either way will have you in safe territory.
We represent Sellers. We bill Sellers for our services. That said, we can also represent Buyers directly, but not in the same sale. Yes, there are sales where we represent both sides, and advice is dispensed often with the caveat to double check or confirm the information with the Buyer’s CPA, attorney, or other advisor. Some sales are basic enough that the Buyer doesn’t really require outside professional assistance. Other sales require assistance but not direct involvement.
NPL Consultants prepares the draft Offering document, the draft Letter of Agreement document, and will work with your attorneys to create final documentation. We strive to keep the process simple, yet affordable, for all parties concerned.
Our fees are ‘percentage of sale price’ based and range from industry standard for small and micro sales, progressively smaller for sales taking place at larger final prices. We can discuss fees once the Questionnaire is completed and reviewed, pricing ranges agreed, and our Agreement is acceptable to the client.
Please refer to the Selling or Buying pages for your specific situation and more information.